The UK beauty industry has proven to be highly resilient, so much so that a ‘lipstick index’ was adopted to gauge consumer spending in hard times. While the Covid-19 pandemic proved the exception to this rule, industry forecasts predict a strong recovery, with 82% of businesses expecting to grow or maintain their operations.
The market’s rosy outlook is highly encouraging for small businesses, but there are hurdles to overcome. The NHBF reported that confidence levels have slightly dipped at the start of 2022, with 38% of business owners unsure of their survival as they continue to face transport delays, product outages, and staff shortages.
If you’ve got plans for your beauty business, it’s essential to have the necessary funding behind you. Read on to learn more about Fleximize's nail and hair salon financing options tailored to your needs.
What are salon loans?
Beauty salon financing helps SMEs access critical funding they might struggle to secure from a traditional provider. As setting up and running a salon requires an initial investment in stock, premises, staff, and salon equipment, financing from outside the company is often needed once the business moves into an early growth phase.
Nail bars, hairdressers, barbers, beauty parlours, and other similar businesses can benefit from salon finance, whether in the form of a business loan, merchant cash advance, line of credit, angel investment, or lump sum from friends or family members.
With startup costs estimated at £50,000 for unfurnished premises, hair or nail salon equipment financing is one of the most common reasons for external funding for beauty businesses. Some lenders may set restrictions on how their products are used, so it's important to find the right loan provider for your business needs.
How do salon business loans work?
Fleximize offers two paths to salon financing through our flexible loan packages: the Flexiloan and the Flexiloan Lite. Both are available as unsecured or secured loans and come with simple, clear, and flexible terms attached. You can learn everything about our loans on our business loans page, but here are the key facts:
- Business loans of £5,000 – £500,000 over 3 – 48 months
- Interest rates starting from 0.9% per month
- Approval and deposit in as little as 24 hours
- No hidden fees or early repayment penalties
- Interest charged on a reducing balance, not the total loan amount
- Repayment holidays and top-ups available with all loans
- Exclusive discounts on industry-leading business services and tools through our Member Marketplace
We understand that many SMEs struggle to secure finance from traditional loan providers due to lengthy application processes and strict criteria. While our team will consider your credit history, we will look at your business's overall performance. As long as you’ve’ traded for more than six months and passed our basic credit checks, you could be eligible for nail and hair salon financing with Fleximize.
What can salon financing be used for?
In many cases, we offer salon business finance to help with cash flow issues, but you can use your funding for almost any purpose supporting your business growth. From essential refurbishments to purchasing vital beauty salon equipment, financing from Fleximize is designed to fit your individual needs.
Our business loans for nail and hair salons are commonly used for:
Get the inventory support you need with our salon equipment financing
With the NHBF estimating startup costs of around £50,000 for salons that aren’t already kitted out, equipment costs can represent one of the biggest challenges for both new and established owners.
Whether it's beauty, hair, or nail equipment that you need, Fleximize can help you access the funding required to kit out your business.
Check your eligibility for hair and nail salon finance
We aim to help as many businesses as possible with our hair and nail salon loans, but there are a few basic requirements to meet:
- You're a limited company or LLP registered with Companies House.
- Your business needs to have traded for six months with a monthly turnover of £5,000 or more.
- Businesses based in England or Wales can apply for salon financing of up to £500,000. Businesses based in Scotland or Northern Ireland can apply for up to £250,000 on an unsecured basis.
- Non-homeowners can apply for up to £20,000 after trading for at least 36 months.
We can also lend to sole traders and non-limited partnerships with less than four partners if they apply for at least £25,000. Those with more partners could be approved for our minimum loan amount of £5,000.
How much will a business loan for a beauty salon cost?
Interest rates on our hair and nail salon small business loans start at 0.9%. Unlike other lenders, you can save money with Fleximize by repaying early as we charge against the reducing balance rather than the total loan amount. We also guarantee never to add early repayment fees under our Penalty-Free Promise.
Our business loan calculator is a helpful place to start if you want an estimate of how much your salon loan could cost. Alternatively, call us on 020 7100 0110, and we'll put together a bespoke salon finance quote.
How our salon loans have helped others
As a business owner, surpassing your growth goals should be a cause for celebration. However, it's easy to miss opportunities if you don't have the resources available to keep up with your burgeoning customer base.
Olivia Crighton, founder of Hackney-based Glasshouse Salon, urgently needed larger premises to expand her team when her funding from a bank lender fell through. Without the money to relocate, she risked losing clients and stunting her salon's growth. Fortunately, Fleximize approved her company for a business loan worth £15,000, allowing Olivia to double the number of stylists on the salon floor.
Why choose Fleximize for salon finance?
We’re big believers in providing flexible finance, done properly. Here are five reasons why you can trust us to support your small business:
- Flexible. You can take advantage of industry-leading flexible features to tailor your funding solution to your specific business, such as repayment holidays and top-ups.
- Fuss-free. Fleximize's quick and easy online application form allows you to begin your funding journey in just a few minutes. Once approved, you could receive your funds in as little as 24 hours.
- Trusted. We've worked with thousands of businesses across the UK, many of which have shared their experiences in our glowing Trustpilot reviews.
- Personal. Each customer receives a dedicated relationship manager to help them throughout your application. You'll be greeted by this same point of contact if you return in the future.
- Award-winning. We are a two-time winner of the Best Business Finance Provider title at the British Bank Awards, with many other awards to our name.
Apply for beauty salon financing today
We make hair and nail salon financing easy. You can get started with your funding application right away – fill out our simple application form. If your business passes our initial checks, we'll be in touch to take you through the final steps. Once we have everything we need, you could be approved and funded on the same day.